Bajaj To Build New Facility In Maharashtra At Rs. 650 Crores Investment
It will come up near the firm's existing Chakan factory and will produce KTM, Triumph motorcycles and EVs.
Bajaj Auto, has announced that its upcoming manufacturing plant will be set up in Maharashtra at an investment of Rs. 650 crores.
The firm has signed a Memorandum of Understanding (MoU) with the State government to build its new facility that will come up next to the firm’s existing factory at Chakan, near Pune.
Expected to get completed and commence production in 2023, the factory will produce the Chetak electric scooter and 2-wheelers of KTM, Husqvarna and the Bajaj-Triumph alliance.
The exact production capacity the new plant will boast of is not known, but it is expected to have the ability to produce more than, or equal to, the number of vehicles the existing factory in Chakan can roll out in a year.
At present, Bajaj’s Chakan facility can produce around 1.08 lakh 2-wheelers a year and considering the growth KTM has been witnessing on a global scale of late, Bajaj is soon expected to increase the plant’s production capacity to 2 lakh units.
Last year, KTM’s worldwide sales stood at 2,80,099 units. By 2022, the Austrian brand, in which Bajaj has 48 percent stake, wants to clock 4 lakh units.
At the moment, barring the upcoming 2-wheelers from the Bajaj-Triumph alliance, which are expected to make their debut in 2022, the Chakan facility rolls out all the other vehicles that will be manufactured at the upcoming plant.
It is most likely that the new facility will give prime importance to manufacturing electric 2-wheelers such as the Chetak, its Husqvarna derivative and the E-Pilen e-motorcycle, among an array of future products.
Interestingly, Bajaj has made this announcement at a time when its rivals, chiefly Honda and Suzuki, have decided to take things slow with regard to new investments.
However, the largest 2-wheeler maker, Hero MotoCorp, has announced it will invest Rs. 10,000 crores towards new manufacturing facilities and products over the next 5 to 7 years.
Source – Moneycontrol.com